Stock Market: Bulls say ‘make it large’ on street with flash funds flood
bse bull
By S Jha
New Delhi, November 29: In a span of two and a half months, Nifty will be testing the high of 20192 in the next few days. After Nifty gave a massive breakout yesterday with a tower-size candle in the afternoon session, the bulls were on a high on Wednesday as funds chased the frontline stocks.
Amid report that multi-billion US Pension Fund would soon be parking corpus in emerging markets with China in the exclusion list, it was a party time for the bulls on the street as they launched themselves on a fast and furious lane since Tuesday afternoon. Breaking out of the congestion zone, Nifty is now looking at an all-time high that was seen mid-September this year when the index had touched the level of 20192.
Bank Nifty has been a laggard against the bullish Nifty for whole of the year. The peak of Bank Nifty was over 46,000 level while the index spurted to the level of 44466 on Wednesday a day ahead of the weekly and monthly expiry of the option contracts. The Bank Nifty is clearly lagging behind Nifty in a big way. The reason for Bank Nifty’s lack of performance is solely because of the snooze state of affairs of the stocks of HDFC Bank and ICICI Bank, which together account for 60 per cent of the weightage. But it was Axis Bank which went on a fast and furious lane, rallying from the level of Rs 990 a few days ago to go past Rs 1060 on Wednesday. It was joined by the HDFC Bank and ICICI Bank also.
Both the indices are setting up for a massive short covering on Thursday even while caution is called for due to the pulls and pressures of the option expiry mechanism in the indices. Also, the most bullish of the private bank, IndusInd Bank, is being added to the MCSI Index, which is likely to be a big bullish trigger for the scrip.
The Wednesday rally was started by the IT scrips such as HCL Technology, Wipro, Tech Mahindra, and Infosys, and soon they passed on the baton to the auto peers as Hero Motocorp, Mahindra and Mahindra and Tata Motors sparkled in the session. IREDA listed on the day with a massive gain of 80 per cent, confirming that the street is treating anything renewable as gold.
About The Author
